ALBANY, N.Y. (AP) – Deutsche Bank has agreed to pay $2.5 billion in a settlement with U.S. and British authorities over the manipulation of benchmark interest rates used globally for its own financial gain.
The U.S. Justice Department said Thursday that the subsidiary DB Group Services UK Limited has agreed to plead guilty to wire fraud.
Deutsche Bank has fired “numerous” employees who were involved and is installing an independent monitor at its New York branch, according to New York’s Department of Financial Services. The department said Thursday at least seven others are now being terminated as it has insisted – four London-based directors, a managing director and vice president, and a vice president in Frankfurt.
“Deutsche Bank employees engaged in a widespread effort to manipulate benchmark interest rates for financial gain,” Department Superintendent Ben Lawsky said. “While a number of the employees involved in misconduct have already left the bank, those that remain are being terminated or banned from the New York banking system.”
The bank said Thursday that it has dismissed or disciplined employees involved and strengthened its controls. It said no current or former member of its management board was involved or aware of the trader misconduct.